XRP Bulls To Retarget $0.80 as Calls for Regulatory Reform Grow

SEC v Ripple Ruling Draws the Attention of US Lawmakers

Over the weekend, Senator Cynthia Lummis called on Congress to recognize the SEC v Ripple rulings, provide a regulatory framework for the industry, and protect consumers.

Senator Lummis issued the following statement in response to the SEC v Ripple Court ruling,

“I applaud the decision of the Southern District of New York finding that crypto assets traded in secondary markets may not be investment contracts. This is the position that section 501 of the Lummis-Gillibrand Responsible Financial Innovation Act has taken from the beginning. The decision confirms the need for Congress to deliver a clear regulatory structure for the crypto asset industry that provides the highest level of consumer protection. We need to pass Lummis-Gillibrand to uphold the Howey test as interpreted by the Southern District of New York.”

Appeal Talk

While Senator Lummis called on Congress to act, former SEC attorney John Reed Stark had a less favorable view of the Court ruling. Stark had this to say about the Programmatic Sales ruling,

“The transformation from a token to becoming ‘not a security’ occurs because the retail trader is presumed not to understand what they’re buying and, as is the case with any securities exchange, not to know specifically who the seller is. This argument seems contrary to sacrosanct and basic investor protection principles.”

Stark added,

“Whether or not an investor reads, or is unable to read, materials relating to their purchase should not ever determine the level of protection that an investor receives. And under any circumstance, it seems logical to presume that an investor (institutional or retail) who buys XRP, is betting on Ripple for one reason or another.”

Stark believes the ruling sits on shaky ground, with an appeal and a reversal likely.

However, progress on Capitol Hill to address the regulatory void that continues to impact the US digital asset space could mute the outcome of an SEC appeal of the Court ruling.

While the outcome of an appeal would impact XRP, Ripple CEO Brad Garlinghouse expects an SEC appeal to take years, giving crypto advocates on Capitol Hill the time to push through legislation to deliver a much-needed crypto regulatory framework.

The Day Ahead

SEC v Ripple Court ruling-related chatter will continue to be the focal point, with investors awaiting further comment from the SEC.

However, we expect sentiment toward the broader market to influence, with Binance and Coinbase battling the SEC in the Courts.